USDCAD Could Top on Bearish Sentiment and Technicals

[B]USDCAD Long-Term Technical Forecast[/B]

The USDCAD is another example of a momentum extreme occurring along with the price extreme. Price is testing a resistance line right now and there is potential for a top and reversal (especially since the rally from .9055 is in 3 waves, two of which are separated by a triangle). Former support at 1.0927 should remain intact.

[B]USDCAD Fundamental Outlook/Interest Rate Forecast[/B]

Interest rate markets predict that the Bank of Canada will cut interest rates by nearly the same amount that the US Federal Reserve will raise them in the coming year—dealing a double-whammy to the recently downtrodden Canadian dollar. Indeed, rate forecasts show expectations of a 116 basis point improvement in the US dollar’s yield differential against the Canadian dollar, and such forecasts give us a bullish bias on the USDCAD pair.

[B]USDCAD Forex Sentiment Outlook[/B]

Forex Futures Data Suggests USDCAD May Top through Short Term Forex Trade